Gordon: Negotiation Power Will Lower Drug Prices
January 12, 2007, WASHINGTON, D.C. – In an effort to make prescription drugs more affordable for seniors, U.S. Rep. Bart Gordon voted to give Medicare the power to negotiate for lower drug prices.
“This bipartisan bill can do what the Medicare Prescription Drug Benefit has failed to do –make drugs more affordable for seniors,” said Gordon, a member of the Energy and Commerce Subcommittee on Health. “The ability to negotiate for lower prices will give Medicare the power to obtain more affordable prescription drugs and save money for beneficiaries and taxpayers.”
The bill, H.R. 4, passed the U.S. House of Representatives today (Jan. 12). The legislation now goes to the Senate for consideration.
Current law prohibits the Secretary of the Department of Health and Human Services from negotiating with drug companies for lower prices for Medicare beneficiaries. H.R. 4 would change that by requiring HHS to negotiate with drug companies on behalf of Medicare beneficiaries.
“It’s ridiculous to deny Medicare, a program that serves 43 million Americans, the power to negotiate lower drug prices,” said Gordon, a co-sponsor of the bill. “The Department of Veterans Affairs only serves 7.7 million veterans but is able to reduce the cost of prescription drugs by negotiating prices, saving billions of dollars for veterans and taxpayers. It’s a policy that works well for the VA, and it also can work for Medicare.”
A report released by Families USA this month found that the largest Medicare Part D insurers were charging 58 percent more than the VA for 10 of the top 20 drugs prescribed to seniors.
“The American people have expressed their desire for change, and Congress is listening,” said Gordon. “People at home, especially seniors, feel the pinch as drug costs are soaring. This common sense approach will provide relief for seniors and their families.”
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